Microfinance impact on poverty alleviation: Grameen Bank Perspective

• Main Authors: Mohammad, Aslam, Senthil Kumar, T., Sorooshian, Shahryar
• Format: Article
• Language: English
• Published: Fakulti Pengajian Peradaban Islam, Kolej Universiti Islam Antarabangsa Selangor 2019
• Subjects: H Social Sciences (General); HG Finance
• Online Access: http://umpir.ump.edu.my/id/eprint/29063/1/Microfinance%20Impact%20%20on%20Poverty%20%20%20%20Alleviation%20-%20Grameen%20Bank%20Perspective-R7652.pdf; http://umpir.ump.edu.my/id/eprint/29063/; http://www.hssr.in©Authors; https://doi.org/10.18510/hssr.2019.64XXXX
• Institution: Universiti Malaysia Pahang

Purpose of the study: With Microfinance concept, it had been hosted primarily in Bangladesh. Grameen Bank has been serving large number of people below poverty level here. Initially, microfinance institutions have been supported by the Government or Donor assuming its positive impact. However, both positive and negative impacts have been visible in several studies that make microfinance still questionable for the researchers. Methodology: This study intent to measure the impact of microfinance on Grameen Bank borrowers’ business, household, individual and security level with survey questionnaire. Therefore, the impact has been measured for participant and non-participant borrowers using Household Economic Portfolio Model (HEPM). Main Findings: Microfinance has been designed to eliminate poverty and help marginal and poor entrepreneurs to create jobs for themselves through income generating activities. The results show that microfinance has positive impacts for participant borrowers in most cases in comparison with non-participant borrowers. Applications of this study: Not only in Bangladesh, but also other countries, policy maker can get an insight of current positive impact scenario of microfinance and endure favourable strategy concerning it. Novelty/Originality of this study: Poverty is a curse for humankind. It has been monitored as economic, social, political and even moral problem around the globe. From this work, microfinance shows as an effective instrument for poverty alleviation.